Alphabet Earnings Dented by Spending on Cloud Business
- Expenses jump 25%, ahead of the 20% increase in revenue
- Google advertising sales climb 17%, driven by Search, YouTube
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Alphabet Inc.’s quarterly earnings were dented by heavy investment in Google’s cloud-computing business, which is key to future growth but still runs a distant third in the market behind Amazon.com Inc. and Microsoft Corp.
Executives said the company will keep spending to pursue opportunities in cloud, artificial intelligence and consumer hardware.